Valencia Ventures Inc.
TSX VENTURE : VVI

Valencia Ventures Inc.

January 08, 2008 08:30 ET

Valencia Successfully Completes 2007 Exploration Programs at Cachinal and Rancheria Projects

TORONTO, ONTARIO--(Marketwire - Jan. 8, 2008) - Valencia Ventures Inc. (TSX VENTURE:VVI) is pleased to report the company's 2007 exploration programs were successfully completed at the Cachinal project in northern Chile and the Rancheria project in Yukon, Canada.

At Cachinal, considerable progress was made in expanding the estimated mineral resources and culminated with completion of the final phase of a three phase drill program in mid-December. Phase III completes the drill data set required for SRK Consulting (Canada) Inc.'s estimation of a NI43-101 compliant mineral resource. Valencia expects to release the final results of the Phase III drill campaign shortly and SRK's report on the updated mineral resources at Cachinal is expected in early February 2008.

At the Rancheria project, our continued focus on high potential targets to generate an economic mineral deposit has resulted in the identification of a new high grade silver zone (Don Zone) on the Blue Heaven property. Final assay results received for trench TR-07-31 at the newly discovered Don Zone include 16,659g/t silver and 62.96% lead over 12cm. In addition, 600 metres of diamond drilling intersected very high grade silver and lead mineralization at the Hall Zone on the Blue Heaven property. Drill results include one interval assaying 3,220g/t silver and 32.2% lead over 20cm.

Commenting on the company's progress during the past year, Doug Bache, President and CEO said, "Valencia made significant strides in 2007 reflecting our focus on identifying, testing and advancing high potential mineral properties." He added, "Cachinal is the result of our conviction and dedication to this approach and we are now in a position to deliver a significant increase in Cachinal's resource. 2008 holds great promise for Valencia as we build upon our existing resource at Cachinal and fast track its assessment and development."

Reviewing Valencia's 2007 exploration program and development plan, the following are the highlights of the company's accomplishments during the past year:

- in February, the company estimated the initial resources at Cachinal, which included approximately 14 million oz of silver in indicated resources and approximately 13 million oz of silver in inferred resources (see press release dated February 27, 2007);

- the first phase of a three-phase drill program at Cachinal was completed in April and added a further 1,200 metres of mineralization in the Northern Extension;

- Cachinal's Phase III drill program was completed in mid-December consisting of detailed infill drilling along sections at 50 metre spacings over the entire 1,300 metre length of the Northern Extension;

- Phase III drill results received to-date have been encouraging and are consistent with initial "resource grade" results returned in Phase I & II;

- in July, Valencia offered to buy Silver Standard's remaining interest in the Cachinal property - with subsequent acceptance of the offer, Valencia owns 100% of the property;

- in October, the company entered into a new joint venture agreement with Silver Standard to earn an 80% interest in the Nuevo Juncal project in Northern Chile;

- at the Rancheria project, the company continued to progress on the Blue Heaven property identifying high grade silver/lead/zinc zones and a new high potential anomaly at the QB property.

Cachinal Project

The 2007 exploration program has been very successful. The Phase I program extended potential mineralized zones both to the north and south of the 2006 resource area. The Phase II program confirmed the presence of "resource grade" mineralized intersections over a strike length of over 1,200 metres. Although not yet substantiated by an independent resource calculation, Valencia geologists hope to establish a resource of approximately 75 million ounces silver.

The Phase III program was completed in December 2007 and consisted of detailed infill drilling along sections at 50m spacings over the 1,200 metre length of the Northern Extension. Drill results received to date have been encouraging and are consistent with initial "resource grade" results returned in the Phase I & II programs. (See Press Releases dated May 1, 2007, September 11, 2007, November 6, 2007 and, November 29, 2007 for details of all drill results)

SRK was appointed in September 2007 to prepare an updated mineral resource estimation and to commence engineering studies which will culminate in a full feasibility study by late 2008 (See Press Release dated September 18, 2007). Geotechnical logging of existing drill core is in progress, metallurgical testwork has commenced and preparations are in place for baseline environmental sampling to begin in January 2008.

Currently, the program is on schedule to complete the expanded resource estimation by early February 2008. Approximately 4,700 drill samples are currently at the laboratory awaiting analysis. Current lab turnaround is approximately 20 days; hence, all results required for the resource estimation are not anticipated until mid-January.

During 2007, Valencia completed expenditure obligations in respect of the Silver Standard JV and in July negotiated an agreement to purchase a 100% interest in the Cachinal property, which hosts the delineated mineral resource. (See Press Release dated July 12, 2007).

Looking forward to 2008, Valencia plans to initiate RC and diamond drilling required to upgrade the mineral resource to a mining reserve in February and, in conjunction with consultants SRK, has established a very aggressive program of geological and engineering tasks to advance the project to the Feasibility Study level as quickly as possible. Additional personnel, drill rigs and other contractors will be mobilizing to the project site during January.

Nuevo Juncal Project

In October, the company entered into an agreement with Silver Standard Resources Inc ("Silver Standard"; TSX: SSO, Nasdaq:SSRI) to acquire an 80% interest in the Nuevo Juncal Silver property (See Press Release dated November 1, 2007).

Historically a polymetallic silver-lead-zinc mine, Nuevo Juncal is located approximately 125km southeast of the Cachinal Silver Project and approximately 450km southeast of Antofagasta in northern Chile, at an elevation of 2800-3000m.

Similar to Cachinal, the Nuevo Juncal property contains historical underground mine workings centered on two main east-west trending mineralized structures, which extend for over 2500m along strike. Complete details of historical production are not known; however, in a 1976 report, the Chilean government agency IIG (Instituto De Investigaciones Geologicas) report silver grades as high as 600g/t silver from richer zones within a mineralized envelope averaging greater than 300g/t silver.

Historical information, included in a 1981 geological report completed for Compania Minera Baritex, who owned the property for a period of time in the 1980s and 1990s and are believed to have done additional mining, describes the mineralized quartz veins as 0.5-1.5m thick, subvertical to 65-80 degreesN dipping, in a 3-5m wide limonitic alteration zone within hydrothermally altered andesite and basalt. Oxidation extends to at least 100m depth. This report also refers to high lead (up to 7.4% lead) and zinc (between 10 - 18% zinc) values.

Silver Standard completed preliminary geological mapping and surface sampling in 2002. The results are believed to be encouraging, including 56 samples from the South Vein with a reported average of 137g/t silver over a strike length of 2200m; 51 samples taken on the easternmost 200m of this structure with a reported average of 2.00% lead and one sample contained 1.6% zinc. Silver values from samples along the North Vein were more sporadic; however, a 300m zone is reported to have averaged 272g/t silver and 2.6% lead. (NB: These results have not yet been verified or substantiated by VVI's Qualified Person).

Rancheria Project

The 2007 exploration program was designed to further evaluate the high-grade silver occurrences located within the Blue Heaven and QB properties to determine the potential for hosting sizeable silver deposits (See Press Release dated July 3, 2007).

In mid-July, the field program commenced and included excavator trenching (1,535m - 21 trenches) and diamond drilling (605m in 6 holes) in the Hall and Don Zones on the Blue Heaven Property and a VTEM airborne geophysical survey over the QB property.

Four diamond drill holes, BH-07-01 to BH-07-04, were completed to test a 180m section of the projected Hall Zone mineralized zone. Significant mineralization associated with encouraging alteration and narrow intervals of semi-massive galena was intersected. Results include high grade silver and lead mineralization in hole BH-07-03:



1.48m @ 599.88g/t, 9.08% Pb, 0.54% Zn
Including 0.74m @ 1,163.12g/t Ag, 16.96% Pb, 1.10% Zn
0.64m @ 1,340.44g/t Ag, 19.59% Pb, 0.54% Zn
0.20m @ 3,220g/t Ag, 32.2% Pb, 1.54% Zn


Further evaluation of the detailed structural geological interpretation is required; however, these results confirm the presence of very high grade mineralization within the Hall zone.

At the Don Zone, trenches across the vein structure, TR-07-31 and TR-07-33, returned elevated silver and lead responses. Chip samples across the massive galena rich vein returned the most significant values of 778g/t silver and 0.76% lead over 3.70m in TR-07-31. The final results for the visually most galena rich zone include a 12cm interval assaying 16,659g/t silver and 62.96% lead.

High grade silver mineralization on the Blue Heaven prospects is interpreted to be structurally controlled, not unlike the high grade shoots which were mined at the United Keno Hill Silver Mine (historical production approximately 239 million ounces silver).

The QB East target hosts massive sulphide and fracture style mineralization believed to be associated with Carbonate Replacement Mineralization. Bedrock exposure is limited but historical soil geochemistry has outlined a moderate to strong anomaly over 600m long by 1500m wide. A 180km helicopter borne VTEM airborne geophysical survey was completed on the QB East as part of the 2007 program to attempt to locate the source of the mineralization. Preliminary survey maps illustrate a very interesting series of sharp anomalies in the southeastern part of the grid, roughly 1 to 1.5km southeast of the main geochemical anomaly and historical 1998 drill area. No trenching, drilling or prospecting has historically been completed in this area.

Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange. Valencia's development strategy is focused on the exploration and development of silver and gold properties, including the Cachinal and Juncal silver projects in Chile and the Rancheria silver project in the Yukon Territory and British Columbia, Canada. With a focus on silver and gold exploration in the Americas, the Company also has a number of property acquisitions under consideration.

For additional information, e-mail info@valenciaventures.com.

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Valencia's Executive Vice President-Exploration & Development, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and has reviewed the technical disclosure in this press release.

Historical results referenced above in respect to the Rancheria Project have been extracted from a NI 43-101 Technical Report on the properties dated April 2006 prepared for Valencia Ventures Inc by William A. Wengzynowski, P. Eng., President of Archer, Cathro & Associates (1981) Limited, which has been filed with the TSX-V and filed on SEDAR as of April 25, 2006 (See Valencia Press Release dated April 11, 2006). The 2007 exploration program for the Rancheria Silver Project was carried out under the supervision of Mr. Wengzynowski, a Qualified Person under National Instrument 43-101, who has reviewed this information and has provided his consent for its release.


This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding exploration prospects, the identification of mineral resources, costs of and capital required for exploration projects, exploration expenditures and timing of future exploration and the costs and timing of additional exploration activities on the property. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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